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Indian stocks experienced a rise in value on Thursday, with IT and financial sectors leading the way in a relief rally driven by lower crude oil prices and a decrease in U.S. bond yields. As of 10:09 a.m. IST, the NSE Nifty 50 index was up 0.49% at 19,531.55, while the S&P BSE Sensex climbed 0.54% to reach 65,579.94.
Asian equities saw slight gains, and Wall Street also experienced an increase as U.S. 10-year yields eased from their recent 16-year high.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned, "The combination of a surging U.S. dollar, rising U.S. bond yields, and crude oil prices is gradually stabilizing, setting the stage for a market recovery." Out of the 13 major sectoral indexes, ten advanced, with the financials and information technology sectors gaining 0.5% and 1%, respectively.
Over the past two weeks, concerns about higher U.S. interest rates impacting Indian company demand had caused the IT index to fall by nearly 5%. The smaller domestic-focused small and mid-cap indexes both gained nearly 1% after underperforming the larger blue-chip stocks in the previous session.
Anita Gandhi, director at Arihant Capital Markets, noted that "third-quarter earnings in September will determine the direction for small and mid-caps," and she added that the recent increase in small and mid-caps had outpaced the underlying fundamentals. Worries about global demand had caused a 5% drop in oil prices, which benefited importers like India.
Among individual stocks, Sobha saw a 3% increase after reporting record sales for the second quarter. Sobha was among the top gainers in the realty index, which rose by 1.4%. Hero MotoCorp, a two-wheeler manufacturer, experienced a 2% increase after receiving 13,688 bookings for its Karizma XMR model. On the other hand, Marico fell by 4% after announcing a decline in quarterly revenue due to weakness in rural recovery.
(Conversion rate: $1 = 83.2025 Indian rupees)
Also read: Indian Stock Market Declines Amid Auto and IT Sector Concerns
